Rep. Kennedy Defends Cash Tied to Abramoff
WASHINGTON, Jan. 4, 2006
Clinton fundraiser to pay fine
New York Daily News
WASHINGTON - One of Sen. Hillary Clinton's fundraising committees will admit it failed to disclose $722,000 in contributions from a felon and pay a $35,000 fine, according to a settlement released Thursday.
The deal stems from a high-powered Los Angeles fundraiser the New York Democrat held Aug. 12, 2000. The event also has sparked a failed federal prosecution of a campaign official and a lawsuit by the contributor, three-time convict and entrepreneur Peter Paul.
Paul, then the head of Stan Lee Media, says he bankrolled the event for New York Senate 2000 - a joint committee of Clinton's, the Democratic Senatorial Campaign Committee and New York state Democrats - all while trying unsuccessfully to get Bill Clinton to work for his company.
He says he paid $2 million to bring the likes of Cher, Michael Bolton and Diana Ross to the glittering gala and to underwrite two other fundraisers.
In the settlement, the Federal Election Commission says it found "probable cause" that the committee and treasurer Andrew Grossman did not disclose $721,895 in contributions for the gala, which the FEC found to cost $1.24 million.
Among the expenses left out were $400,000 for a concert, $92,000 to bring the stars to the event and $109,000 for food and drinks.
A lawyer for the New York Senate 2000 committee said the settlement exonerates Clinton and her own campaign committee.
"The rather modest civil penalty speaks volumes about this matter," said the lawyer, Marc Elias.
Clinton's former fundraising chief, David Rosen, was acquitted last spring of felony charges for hiding the $720,000. But Paul, who has been convicted of fraud charges related to the failure of Stan Lee Media, saw the settlement as vindication.
"After nearly five years, (Grossman) finally accepts responsibility for hiding the largest contribution to Hillary's campaign," said Paul, who now alleges in a lawsuit that the Clintons defrauded him and contributed to the failure of his company.
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